It is difficult to determine expected real rates of interest because
A) we never know exactly what inflation rates people anticipate.
B) we cannot measure the nominal interest rate.
C) the inflation rate is a subjective measurement.
D) we cannot measure the inflation rate.
A
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If the price of a good is decreased and total revenue received from the sale of this good does not change, then the price elasticity of demand for the good is
A) elastic. B) inelastic. C) unitary. D) None of the above
Costs borne solely by the individuals who incur them are
A) private costs. B) social costs. C) internality. D) common property.
College students without verifiable income cannot be issued credit cards.
Indicate whether the statement is true or false
The marginal propensity to consume is
A. That part of the average consumer dollar that goes to saving. B. Always equal to 1. C. The change in consumption divided by the change in disposable income. D. The same as the spending multiplier.